Sun Pharma to make upfront payment worth Rs 240 crore to CSIR-IICT Hyderabad for new drug compounds

India’s largest drug producer, Sun Pharma entered into a global licensing agreement with Hyderabad based CSIR Indian Institute of Chemical Technology. This patent is related to certain therapy areas with multiple indications. This has come at an upfront payment of Rs 240 crore (US$ 33.6 million) by the Sun Pharma to the institute and according to the terms of the agreement CSIR, Hyderabad will also be given royalties on net sales from the commercialization of these products.

This comes as the global enhancement by the Sun Pharma in speciality pipeline and will help to broader the strategies by developing new drugs. CSIR-IICT is famous for its enriched research and this collaboration will help Sun Pharma to address the unmet needs of patients globally.

According to Sun pharma, this agreement will enhance its presence in pre-clinical candidates to Sun Pharma’s global specialty pipeline. R&D spend was reduced in the quarter end June 2019. Its R&D investments for first quarter of 2020 was Rs. 422 crores (US$ 58.65 million) compared to Rs 500 crores (US$ 69 million) for first quarter of FY19.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.